Explore Special Offers & White Papers from AFS

Stock Indexes Near A Bottom?


U.S. stock index futures are lower due to continued uncertainties about the debt ceiling, the Federal Reserve possibly tapering its $120 billion a month in asset-purchases, the global chip shortage, concerns around slowing global economic growth and weakening sentiment in Asia and Europe.

On the bullish side is the historically low fed funds rate of zero to 25 basis points that is unlikely to be increased any time soon.

Investors are watching negotiations in Congress closely, as lawmakers debate increasing the debt ceiling ahead of a deadline this month.

In Asia, most major stock markets pulled back, although markets in mainland China are closed until Friday for the Golden Week holiday.

The 9:00 central time August factory orders report is expected to show a 1.0% increase.

There have been so many bearish articles on the outlook for stock index futures in recent days, which suggests from a contrary point of view, that a bottom is likely soon.

Despite the recent pressure, the longer-term fundamental and technical aspects remain supportive for stock index futures.


After the U.S. dollar index advanced to a one-year high last week, the greenback has weakened over the past three trading days.

The euro currency is higher as borrowing costs in the euro zone nudged up on Monday.

Fumio Kishida took office as Japan’s new prime minister on Monday, forming a Cabinet that will seek to revive the economy.


Futures at the long end of the curve are lower.

The yield on the benchmark 10-year Treasury note ticked up to 1.494% Monday, from 1.464% on Friday.

Federal Reserve speakers today are Eric Rosengren at 9:00 and James Bullard at 9:00.

There is a consensus view that the Federal Reserve will announce a tapering of its $120 billion a month in its asset-purchase program at its November policy meeting.

Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

Latest News & Market Commentary

Explore Special Offers & White Papers from Archer Financial Services

Get Started

Contact Us Today